The Options Trader's Workbook: A Problem-Solving Approach by Jeff Augen

This week's featured book on options trading:

The Options Trader's Workbook: A Problem-Solving Approach
by Jeff Augen
FT Press (December 2008)

From the publisher: Most options books offer theory and strategies but don’t give you what you really need: hands-on practice that prepares you for real-world trading, where subtle decisions make the difference between winning and losing. Now, there’s a solution: The Option Trader’s Workbook.

Using a question and answer format, this innovative workbook covers key scenarios you’ll encounter as an option trader. Expert trader Jeff Augen explains the challenges they present, reveals the potential pitfalls, and walks you through each example to help you understand how to maximize your success. You’ll master trades designed to profit from rising or falling stock prices, rising or falling volatility, time decay, rapid price spikes, and many other market dynamics. Each section helps you build your skills one trade at a time -- whether you’re new to options or you’ve been trading for years.

• Learn by doing -- not by reading or memorizing. Practice real decision-making in real trading situations.

• Gain a detailed, intuitive understanding of pricing. Understand exactly what must happen for your trade to be profitable.

• Learn to identify efficient trade structures. Avoid errors that cause losses even when you’ve correctly predicted a stock’s direction.

• Learn how to manage risk effectively. Optimize profits by choosing the right option strategy for a particular situation.

• Use complex trading strategies with confidence. Master highly profitable techniques used by professionals.

Also available: The Options Trader's Workbook (Kindle edition). Learn more about the Amazon Kindle, a wireless reading device.